All Forum Posts by: Account Closed

Kevin Siedlecki check your math. $4.5 million at 4.0% over 30 years is $21,484 per month or $258k per year. I've got $4.3 million of debt and some is at less than 4.0%. This gets me to the $243k figure... What is with all the haters? I've had the capex/maintenance discussion already so not going to rehash that...

Juan Garcia - one word. Capital. I am waiting on an appraisal of by most recent reno to cash out (hopefully) a half a million in the form of a commercial loan be if credit. Once I have that I will find the next dump where I can add value through renovation.

Dave Howland - you are right Cambridge/Somerville is really tough and you have to dig To find the right deal. For the record, my most recent 4- family property (purchased in May 2016) was $900k and was a disaster. Total gut rehab and $750k in renovation costs later it is beautiful, appraises at (hopefully) $2.4mm and generates $7-8k a month in cash flow before taxes. You will NEVER find something turn key in this market but there are investment opportunities for those who want to roll up their sleeves, deal with historical preservation commissions, manage through zoning board of appeals, spend a boat load money, and take on some risk. It's a ton of work, lots of stress, and definitely not for everyone...but pays dividends in the end. Just my two cents.

Juan Garcia good question. If I had know about HELOCs on investment properties before 2014 I probably would have been able to purchase my second property a couple years earlier. Also - never paint bath tubs. They chip no matter what. Better off replacing the tub entirely putting a vinyl bath fitter on top. I painted two tubs and they look horrible now.

What are people's thoughts around umass medical and adcare? Oak Ave/ auburn st/ converse st? What kind of tenants? Will WPI students live there and head the 1 mile west to campus?

Juan Garcia - my first was financed with a traditional mortgage (80 first/10 HELOC/ 10 cash). Renovations were financed with cash.

Kyle Lewis - the key stats on my most recent rehab of a historic 4 family in Somerville are as follows: $900k purchase price $750k renovations and other construction related costs ----- Total investment $1,650,000 Estimated value (fingers crossed) - at least $2.4 million. Appraisal is coming back Wednesday which will determine how much cash I can pull out. Bank financed $565k in renovations and $675k of the purchase price.

Colby Carrier - thanks. This is helpful. What about in other parts of Worcester. Do you get paid for newly finished hardwood, higher end kitchens, and showers with mosaic floors and stand up stalls and new vanities?

Greg S. ...so you are an expert on the Cambridge/Somerville/Boston rental market and the fundamentals that support these rental prices? I can tell you that I have no clue what's going on in Ontario....

Brandon Boyd - my suggestion is that while you are still living in the home obtain a HELOC, assuming value has gone up since initial purchase. It's easier to get a HELOC on your primary residence. HOWEVER...Make sure you can service the interest on the HELOC with cash flow from the primary residence rental. This is the biggest key to utilizing debt efficiently and effectively, you have to be able to service it with cash flow from the property the loan is on.